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A Max-Min Two-Group Contest with Binary Actions and Incomplete Information à la Global Games

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  • Bosco, Davide
  • Gilli, Mario
  • Sorrentino, Andrea

Abstract

In this paper we introduce incomplete information à la global games into a max-min two-group contest with binary actions and we characterize the set of equilibria. Depending on whether the complete information assumption is relaxed on the value of the prize or on the cost of providing effort, we obtain different results in terms of equilibrium selection: in the first case, there exists both an equilibrium in (monotonic) switching strategies and an equilibrium robust to incomplete information in the sense of Kajii and Morris [1997], in which no player exerts effort in both groups, whereas in the second one there exists a unique equilibrium in (monotonic) switching-strategies.

Suggested Citation

  • Bosco, Davide & Gilli, Mario & Sorrentino, Andrea, 2024. "A Max-Min Two-Group Contest with Binary Actions and Incomplete Information à la Global Games," FEEM Working Papers 347679, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemwp:347679
    DOI: 10.22004/ag.econ.347679
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    1. repec:wly:soecon:v:83:1:y:2016:p:105-125 is not listed on IDEAS
    2. Carlsson, H. & van Damme, E.E.C., 1991. "Equilibrium selection in stag hunt games," Other publications TiSEM bd92d0ae-790f-40ad-afea-4, Tilburg University, School of Economics and Management.
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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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